TXOne Networks Company Profile

Background

TXOne Networks, established in 2018, specializes in cybersecurity solutions tailored for industrial control systems (ICS) and operational technology (OT) environments. The company's mission is to ensure the reliability and safety of industrial operations by providing comprehensive protection against cyber threats. TXOne Networks collaborates with leading manufacturers and critical infrastructure operators to develop practical, operations-friendly approaches to cyber defense, safeguarding assets throughout their entire lifecycle.

Key Strategic Focus

TXOne Networks emphasizes the "OT Zero Trust" methodology, which involves:

Asset-Centric Security Measures: Implementing security protocols throughout the lifecycle of mission-critical assets, including pre-service inspection, endpoint protection, and network defense during various operational stages.

Adaptive Defense Strategies: Integrating network segmentation, endpoint protection, and threat detection into a unified approach to secure both legacy and modern OT systems against evolving cyber threats.

Industry-Specific Solutions: Providing tailored cybersecurity solutions for diverse sectors such as semiconductors, automotive, pharmaceuticals, food and beverage, public transportation, utilities, electronics, healthcare, mining and metals, oil and gas, and aerospace.

Financials and Funding

TXOne Networks has successfully completed multiple funding rounds:

Series A (August 2021): Raised $12.9 million, led by JAFCO Asia Investment and Jade Stone Jinghua Limited Partnership Fund.

Series B (August 2022): Secured $70 million, with TGVest Capital as the lead investor.

Series B Extension (May 2024): Obtained an additional $51 million, with continued support from existing investors and new participation from Taiwania Capital and Applied Ventures ITIC Innovation Fund.

The capital raised is intended to refine TXOne's ICS security products, expand its global presence, and strengthen marketing and after-sales service teams.

Pipeline Development

In April 2024, TXOne Networks introduced the SageOne central management console, an innovative Cyber-Physical Systems (CPS) protection platform. SageOne delivers comprehensive management of the CPS attack surface across OT environments, combining advanced technologies with a user-friendly interface to secure critical infrastructures and enable integrated lifecycle protection.

Technological Platform and Innovation

TXOne Networks distinguishes itself through several proprietary technologies and methodologies:

OT Zero Trust Methodology: A framework that applies a "never trust, always verify" philosophy, ensuring continuous protection and operational continuity in OT and ICS environments.

TXODI Engine: An OT-native technology that powers multi-layer protection, covering network, endpoint, and inspection expenses, and supports over 6,000 combinations of granular ICS protocol parameters for precise network micro-segmentation.

ICS Application Vault: A repository preserving 8,000 OT software operations, facilitating seamless operations with zero impact on existing systems and processes.

Edge V2 Engine: Introduced to eliminate the spread of OT network infections and safeguard reliable operations, featuring automatic rule generation to simplify network segmentation in complex, large-scale OT environments.

Leadership Team

TXOne Networks is led by a team of seasoned professionals:

Dr. Terence Liu, Chief Executive Officer: With a Ph.D. and M.S. in computer science from National Tsing-Hua University in Taiwan, Dr. Liu has extensive experience in cybersecurity, including leadership roles at Trend Micro and as CEO of Broadweb.

Jeff DePasse, Regional Vice President of Sales, Americas: Brings over 30 years of experience in high-tech sales, including 15 years in cybersecurity.

Dave Purdy, Regional Vice President of Sales, North America: Specializes in business and operational resiliency across various industries, with prior leadership positions at AWS, EMC Corporation, and IBM Corporation.

Jeff Van Natter, Director of Strategic Alliances and Business Development: Expertise in partner-program execution for business intelligence, enterprise resource planning, and enterprise IT and OT security, with previous roles at Business Objects, SAP, Compuware, and Trend Micro.

Leadership Changes

In 2022, TXOne Networks expanded its Americas operations, appointing Jeff DePasse as Regional Vice President of Sales, Americas, and reinforcing the management team with experts such as John Elder (Channel Director), Austen Byers (Technical Director), and De Anne O’Connell (Marketing Director).

Competitor Profile

Market Insights and Dynamics

The global industrial cybersecurity market was valued at approximately $13.7 billion in 2021 and is projected to reach $36.5 billion by 2028, growing at a CAGR of 14.8%. The increasing prevalence of cyber threats and the adoption of Industry 4.0 technologies are driving demand for robust ICS protection solutions.

Competitor Analysis

TXOne Networks operates in a competitive landscape with several key players:

Nozomi Networks: Specializes in real-time visibility and cybersecurity for industrial operations, supporting over a quarter of a million devices across various sectors.

Claroty: Provides a comprehensive cybersecurity platform for ICS, SCADA, and other OT systems, offering extreme visibility and threat protection.

Panda Security: Develops cloud-based cybersecurity solutions for home users and businesses, with a focus on IT environments.

Sejel Technology: An IT solutions provider offering a range of services, including cybersecurity.

Securelynkx Rfid Network: Provides information technology solutions, including cybersecurity services.

TXOne Networks differentiates itself by offering OT-native solutions specifically designed for industrial environments, ensuring seamless protection without disrupting critical operations.

Strategic Collaborations and Partnerships

TXOne Networks has established significant collaborations to enhance its market position and innovation capacity:

Trend Micro and Moxa: Founded as a joint venture between these companies, TXOne Networks leverages their expertise in information security and industrial infrastructure to develop specialized OT security solutions.

TGVest Capital: Led the Series B funding round, providing substantial financial backing to support TXOne's growth and expansion initiatives.

Taiwania Capital and Applied Ventures ITIC Innovation Fund: Participated in the Series B extension round, contributing to the company's financial resources for further development and market penetration.

Operational Insights

TXOne Networks' strategic considerations include:

Market Position: Focusing on OT-native cybersecurity solutions, TXOne addresses the unique challenges of industrial environments, distinguishing itself from competitors that adapt IT security measures for OT settings.

Competitive Advantages: The company's proprietary technologies, such as the TXODI engine and Edge V2, provide multi-layer protection and adaptive defense strategies tailored for ICS and OT systems.

Global Expansion: With a growing presence in the Americas and strategic partnerships, TXOne is well-positioned to meet the increasing demand for industrial cybersecurity solutions worldwide.

Strategic Opportunities and Future Directions

TXOne Networks' strategic roadmap includes:

Product Innovation: Continuing to develop and refine cybersecurity solutions that address the evolving threats in industrial environments, ensuring the protection of critical assets throughout their lifecycle.

Market Expansion: Leveraging recent funding to strengthen its presence in key industries such as semiconductors, automotive, and manufacturing, and exploring opportunities in emerging markets.